From Strategy to Business Essay Example for Free

From Strategy to Business Essay Strategy scholars have used the notion of the Business Model to refer to the ‘logic of the firm’ e how it operates and creates value for its stakeholders. On the surface, this notion appears to be similar to that of strategy. We present a conceptual framework to separate and relate the concepts of strategy and business model: a business model, we argue, is a reflection of the firm’s realized strategy. We find that in simple competitive situations there is a one-to-one mapping between strategy and business model, which makes it difficult to separate the two notions. We show that the concepts of strategy and business model differ when there are important contingencies on which a well-designed strategy must be based. Our framework also delivers a clear distinction between strategy and tactics, made possible because strategy and business model are different constructs. Ó 2010 Elsevier Ltd. All rights reserved. Introduction The ï ¬ eld of strategy has evolved substantially in the past twenty-ï ¬ ve years. Firms have learned to analyze their competitive environment, deï ¬ ne their position, develop competitive and corporate advantages, and understand better how to sustain advantage in the face of competitive challenges and threats. Different approaches including industrial organization theory, the resource-based view, dynamic capabilities and game theory have helped academicians and practitioners understand the dynamics of competition and develop recommendations about how ï ¬ rms should deï ¬ ne their competitive and corporate strategies. But drivers such as globalization, deregulation and technological change (to mention only a few) are profoundly changing the competitive game. Scholars and practitioners agree that the fastest growing ï ¬ rms in this new environment appear to be those that have taken advantage of  these structural changes to innovate in their business models so they can compete ‘differently’. IBM’s Global CEO Studies for 2006 and 2008, for example, show that top management in a broad range of industries are actively seeking guidance on how to innovate in their business models to improve their ability to both create and capture value.1 In addition to the business model innovation drivers noted above, much recent interest has come from two other environmental shifts. Advances in ICT have been a major force behind the recent 0024-6301/$ see front matter.interest in business model innovation. Many e-businesses are based on new business models e Shafer, Smith and Linder ï ¬ nd that eight of the twelve recent business model deï ¬ nitions they present relate to e-business.2 New strategies for the ‘bottom of the pyramid’ in emerging markets have also steered researchers and practitioners towards the systematic study of business models. Academicians working in this area agree that ï ¬ rms need to develop novel business models to be effective in such speciï ¬ c and challenging environments (see work by Thompson and MacMillan, as well as by Yunus et al. in this issue), and socially motivated enterprises constitute a second important source of recent business model innovations. Advances in ICT and the demands of socially motivated enterprises constitute important sources of recent business model innovations. While it has become uncontroversial to argue that managers must have a good understanding of how business models work if their organizations are to thrive, the academic community has only offered early insights on the issue to date, and there is (as yet) no agreement as to the distinctive features of superior business models. We believe this is partly because of a lack of a clear distinction between the notions of strategy, business models and tactics, and the purpose of this article is to contribute to this literature by presenting an integrative framework to distinguish and relate these three concepts. Put succinctly:  Business Model refers to the logic of the ï ¬ rm, the way it operates and how it creates value for its stakeholders; and  Strategy refers to the choice of business model through which the ï ¬ rm will compete in the marketplace; while  Tactics refers to the residual choices open to a ï ¬ rm by virtue of the business model it chooses to employ. To integrate these three concepts, we introduce a generic two-stage competitive process framework, as depicted in Figure 1. In the ï ¬ rst stage, ï ¬ rms choose a ‘logic of value creation and value capture’ (i.e., choose their business model), and in the second, make tactical choices guided by their goals (which, in most cases, entail some form of stakeholder value maximization). Figure 1 thus presents our organizing framework: the object of strategy is the choice of business model, and the business model employed determines the tactics available to the ï ¬ rm to compete against, or cooperate with, other ï ¬ rms in the marketplace. The article is organized as follows. In the next section we deï ¬ ne and discuss the notion of business models and present a tool to represent them, while the following section considers the stage two ‘choice’ in our framework, presenting and discussing the notion of tactics in relation to that of business model. The following section then moves back to examine the ï ¬ rst e strategy e stage, after which we revisit our process framework to integrate the three notions. We discuss the connection between strategy and business model, arguing that both notions can be clearly separated. A detailed example is developed in the following stage, followed by some concluding remarks. Business models Although the expression ‘business model’ has gained in prominence only in the last decade, the term has been part of the business jargon for a long time, its origins going back to the writings of Peter Drucker. Although (as Markides points out) there is no widely accepted deï ¬ nition, Magretta deï ¬ nes business models as ‘stories that explain how enterprises work’, and follows Drucker in deï ¬ ning ‘a good business model’ as the one that provides answers to the following questions: ‘Who is the customer and what does the costumer value?’ and ‘What is the underlying economic logic that explains how we can deliver value to customers at an appropriate cost?’ While not formal, her implicit idea is that a business model is about how an organization earns money by addressing these two fundamental issues e how it identiï ¬ es and creates value for customers, and how it captures some of this value as its proï ¬ t in the process. Amit and Zott’s deï ¬ nition, in contrast, is less broad (as it focuses on e-businesses) but more precise. Reviewing the contributions of several theories including virtual markets, Schumpeterian innovation, value chain analysis, the resource-based view of the ï ¬ rm, dynamic capabilities,  transaction cost economics and strategic networks they point out that each contributes elements to the notion, but that none, by itself, explains business models completely. They analyze a sample of U.S. and European e-business models to highlight the drivers of value creation, and present the following integrative deï ¬ nition: ‘A business model depicts the content, structure, and governance of transactions designed so as to create value through the exploitation of business opportunities.’ The content of a transaction refers to the goods or information exchanged, as well as to resources and capabilities required; the structure refers to the parties that participate, their links, and the way they choose to operate, and governance refers to the way ï ¬â€šows of information, resources and goods are controlled by the relevant parties, the legal form of organization, and the incentives to the participants.5 In this issue, they build on this deï ¬ nition to propose an ‘activity system perspective’ for the design of business models, arguing that activity systems capture the essence of business models and proposing two sets of aspects for designers to consider: design elements (content, structure and governance) that describe the activity system’s architecture, and design themes (novelty, lock-in, complementarities, and efï ¬ ciency) that describe its sources of value creation. The common thread across all of these approximations to the notion of busin ess model is well captured by BadenFuller, MacMillan, Demil and Lecocq in their deï ¬ nition ‘the logic of the ï ¬ rm, the way it operates and how it creates value for its stakeholders’, and we adopt their deï ¬ nition as the starting point for our argument. To make progress toward understanding business models, we ï ¬ nd it helpful to use the analogy of a machine e by which we mean a mechanical device that transmits energy to perform tasks. (Of course, real organizations are different from machines in many important respects, but the comparison is helpful, especially to our thinking in contrasting the notions of strategy and business models.) Any given machine has a particular logic of operation (the way the different components are assembled and relate to one another), and operates in a particular way to create value for its user. To be more concrete, different automobile designs have different speciï ¬ c logics of operation conventional engines operate quite differently from hybrids, and  standard transmissions from automatics and create different value for their ‘stakeholders,’ the drivers. Some may prefer a small car that allows them to navigate congested city streets easily, while others may prefer a large SUV with a powerful engine to enjoy the countryside to the fullest. Automobiles are made of parts wheels, engines, seats, electronics, windshields, and the like. To assess how well a particular automobile works or to create a new one one must consider its components and how they relate to one another, just as, to better understand business models, one needs to understand their component parts and their relationships. (We return to this analogy during the paper: readers will gain more value from it if they understand the design and building of the car as representing strategy; the car itself as the business model; and the driving of the car as the available set of tactics.)

The Modem :: essays research papers

The Modem First of all I would like to start with an introduction I chose this topic because I thought it would be interesting to learn about how a modem works in a computer. With modem we are able to access the Internet BBS' or Bulletin Board Systems. The MODEM is one of the smartest computer hardware tools ever created. modem is an abbreviation of Modulator De Modulator it is fairly simple to explain; through the telephone lines we are able to send messages between one single computer or a group of computers. The Originating computer sends a coded message to the Host computer which decodes it and there we have the power to access the Internet, talk to other people through terminal programs and retrieve files from other computers. The first patented computer modem was made by Hayes in the early eighties and from there they rapidly developed the first modem speed was 300 baud and from there a 600 baud than 1200 and so on. The fastest modem made today is a 56k which is very fast. Not as fast as ISDN (The Wave offered through Rogers cable) or even as advanced as Satellite modem. Most people now have 14.4 or 28.8 baud modems (Baud is "Slang" for Baud Rate Per Second) the reason for the increase in 14.4 and 28.8's is that they are cheap and fairly recent and haven't gone out of date yet. There are two types of modem external and external modems internal plugs into a 16 bit port inside your computer and external connects through either a serial (mouse)port or a parallel (printer)port most people like the external modems because they don't take up an extra space in your computer (according to PC Computing) prices in modems range price from $100 (28.8bps) to $500(software upgradable 56k). Facsimile machines also have a form of modem in them, usually a 2400baud modem to decode the message. So imagine a world without the modem for a second; NO fax NO Internet NO direct computer communications whatsoever. The three major modem manufactures are Hayes (original modem) US Robotics and Microsoft. In conclusion life today it would be very hard to live without modems some businesses would cease to exist due to ill communications between offices and without modems we wouldn't have videoconfrencing e-mail and other tools we have

Affirmative Action: The Nation’s continuing battle for racial equality

Affirmative action is a policy of the State which has for its goal the elimination of historically rooted discrimination against men and women of colour. This is an active response of the State to the overwhelming concern of racial discrimination happening in the country and around the Globe. The existence of different nationality, race and ethnicity is a fact that has been long recognized. The looming problem in our society is determined by the equality of opportunities and the degree of acceptance. By acceptance it means the openness of firms, companies, and other institutions to hire men and women of colour. One need not look too far beyond to see how self-interest has been the ruling factor that has caused all development and transformation in the world. The formation of human rights seem to be the perfect illustration to this as it has been primarily geared towards the conscious regard to the political rights of the people. Through time, the ancient civilizations sought for more responsive policies then for more progressive ones as these clamours push for the commencement of social and cultural rights as well as economic rights respectively. This relative expansion in the coverage of human rights is not limited to narrow scope of the international sphere. This improvement transcends all the aspects of a political man. That is, in consideration of the triumvirate of goods or the different active determinants in the life of an individual â€Å"the political events, economic situation as well as the societal condition all lend a hand in the establishment of a singular prototype that would shape an individual. As a result, the manner and level by which an individual’s need would be catered to is the final cause of human advancement. This means that all growth and evolution depends on the intensity of human involvement to achieve what he wants. As a corrective measure, Affirmative action’s primary purpose is to cure defects in the government and other sectors of society. These defects are mainly caused by social strife, injustices, violation and discrimination in areas that include business, education and the military. This has been seen by the state as a necessary meant to tip the scale in favor of those who have been disadvantaged over the years. Protection of every citizen is the primary goal and objective of its citizens. This entails not only the protection from physical harm but also the assurance that the citizen is not disadvantaged in terms of work opportunities. Affirmative action is a means of the State to promote the welfare of the people. However, the real question is â€Å"can racial equality be achieved in business, education and the military without the use of policies that promote Affirmative Action?† On the other hand, it would appear that the primary objective of every individual is of getting those that he needs which would ultimately result in the progress of the entire society. This situation typifies the idea of self-interest as the governing factor that qualifies international growth and transformation. There is nothing inherently wrong with this; however, in this day and age, much of the development in the field of Politics should be and has been generally focused on policy-making and procedural re-awakening aimed in attempting to legislate policies that would make a more peaceful international community shared by men and women. Racial equality is an old issue but it remains to be of great national concern given the fact that existence of affirmative action is a way to remind us of the importance of recognizing and respecting individual rights of persons, regardless of race.   

Cjus254 Unit 5 Ip - 1349 Words

Robert Yarbrough CJUS254-1601A-01 Professor: Joseph Moore Abstract My director is not aware of the relationships between the Department of Homeland Security and private sector companies. She has requested an information paper that shows her why these relationships are important, as well as how the DHS uses these companies as a tool for the protection of critical infrastructure and key resources. To: Director, Executive Secretariat of the Office of the Secretary, DHS From: Action Officer, Executive Secretariat of the Office of the Secretary, DHS Ma’am, Cooperation with all levels and forms of security entities is of paramount importance. We cannot profess to be the best at what we do if we are blind to this fact. There†¦show more content†¦That being said, even though we don’t really have a direct hand in these other SSA run Sectors, we do have an opportunity to assist with any lessons learned in the running of our particular sectors through Critical Infrastructure Cross – Sector Councils, made up of the chair and vice-chair of each SSA. This gives us the ability to not only offer up advice to other SSAs, but also to hear and utilize methods that are currently working for other agencies as well. (dhs.gov/critical-infrastructure-sector-partnerships) In order to put these complicated processes into perspective, I’ll be giving a few examples of DHS missions that involve coordination between SSAs, State, Local, Tribal, or Territorial agencies, and private enterprise. A very recent and relevant example is security operations for Super Bowl 50. The game was played last night at Levi’s Stadium in Santa Clara, a suburb of San Francisco, California. DHS agencies including the TSA, CBP, ICE, Coast Guard, the Secret Service, FEMA, our Office of Intelligence and Analysis, and our National Protection and Programs Directorate teamed up with local and state law enforcement agencies, as well as security experts employed by the National Football League, as